Tax Tips 2007 (filing season 2008)
IRS Launches Summer Push to Reach Retirees and Disabled Veterans Who Have Yet to File
Millions of retirees and disabled veterans qualify for the economic stimulus payment but have not filed to claim it. Statistics indicate about 74 percent in this group are accounted for in the stimulus payments currently being sent, leaving about 5.2 million retirees and veterans' beneficiaries who potentially are eligible for the stimulus payments. Later this summer, the agency will send them a special letter that explains stimulus payment eligibility and how to claim it. To read this Article Click here
It's Not too Late To File for Your 2008 Stimulus Payment
Even though the April 15 tax deadline has passed, it is not too late to file for your economic stimulus payment this year. Persons who qualify for the payment must file a 2007 tax return by October 15, 2008. Millions of people are eligible but may not know it, or think it is too late to get a payment. These are certain retirees, disabled veterans and low-wage workers who normally don’t file a tax return because their income is too low or nontaxable. This year, they must file to receive their stimulus payment. The IRS will issue economic stimulus payments of up to $600 for individuals ($1,200 for married couples) plus $300 for each eligible child under age 17 starting in early May, based on 2007 tax returns processed by April 15. To read this Article Click here
Help from the Taxpayer Advocate Service
If you have tried to resolve tax problems with the IRS and are still having problems or facing economic harm, you have somewhere to turn: seek the free assistance of the Taxpayer Advocate Service. The Taxpayer Advocate Service is an independent organization within the IRS whose employees assist taxpayers in these circumstances or those who believe that an IRS system or procedure is not working as it should. The service is free, confidential, tailored to meet your needs, and available for businesses as well as individuals. To read this Article Click here
Are you in the middle of a disagreement with the IRS? If you disagree with the IRS about the amount of your tax liability or about proposed collection actions, you have the right to ask the IRS Appeals Office to review your case. To read this Article Click here
What To Do If You Receive an IRS Notice
It’s a moment many taxpayers dread. A letter arrives from the IRS — and it’s not a refund check. Don’t panic; many of these letters can be dealt with simply and painlessly. To read this Article Click here
Amending Your Tax Return
Oops! You’ve discovered an error after your tax return has been filed or maybe you need to adjust your 2007 return to include certain non-taxable benefits to reach the $3000 qualifying income level to qualify for an economic stimulus payment. What should you do? You may need to amend your return. To read this Article Click here
How Long Should It Take To Receive Your Tax Refund?
Are you expecting a tax refund from the Internal Revenue Service this year? If you file a complete and accurate paper tax return, your refund should be issued about six to eight weeks after the IRS receives your return. If you file your return electronically, your refund is issued in about half that time — even faster if you choose direct deposit. To read this Article Click here
Need More Time to File?
If you can't meet the April filing deadline to file your tax return, you can get an automatic six month extension of time to file from the IRS. To read this Article Click here
Payment Options
If you cannot pay the full amount of taxes you owe by the April deadline, you should still file your return by the deadline and pay as much as you can to avoid penalties and interest. There are also alternative payment options to consider. To read this Article Click here
Making Tax Payments Correctly
If you have a balance due when filing your 2007 income tax return, remember to make sure your tax payment check or money order is payable to the "United States Treasury." Complete and include Form 1040-V, Payment Voucher, when sending your payment and tax return to the IRS. This will help the IRS process your payment more accurately and efficiently. To read this Article Click here
Last Minute Payment and Filing Tips
If you’re trying to beat the tax deadline, there are several options for last-minute help. To read this Article Click here
Filing Your Federal Tax Return
Once you complete your 2007 federal tax return, you can either file it electronically or mail it to the IRS. More than one-half of all taxpayers file electronically because they know that IRS e-file provides a fast, easy, accurate, secure and convenient way to file. To read this Article Click here
Preparing Your Tax Return for Mailing
If you are mailing a paper return to the IRS, take a few minutes to make certain that all information is complete and accurate before sealing the envelope. This simple precaution could help you avoid mistakes that can delay your refund or result in correspondence from the IRS. To read this Article Click here
March 29 - A day of help for millions filing returns solely to obtain stimulus payments
Are you one of millions of Americans who need to file a tax return this year solely to obtain your economic stimulus payment? The IRS has set aside Saturday, March 29 as "Super Saturday," a day of help just for you! To read this Article Click here
Avoid Common Errors
The IRS recommends reviewing your entire tax return to be sure it is accurate and complete. Even a simple mistake can cause problems which might lead to delays in processing your return and receiving your refund. To read this Article Click here
Tips for Last-Minute Filers
With the tax filing deadline close at hand, the IRS offers some tips for those still working on their paper tax forms. To read this Article Click here
You Can Still Make a 2007 IRA Contribution
If you haven’t contributed funds to an Individual Retirement Arrangement for tax year 2007, or if you’ve put in less than the maximum allowed, you still have time to do so. To read this Article Click here
How to Check on Your Tax Refund
If you already filed your federal tax return and are due a refund, you have several options for checking on the status of your refund. To read this Article Click here
Coverdell Education Savings Accounts
A Coverdell Education Savings Account (ESA) is an account created as an incentive to help parents and students save for education expenses. To read this Article Click here
Deducting Vehicle Donations
If you donated a car or other vehicle to a qualified charitable organization in 2007 and intend to claim a deduction you should review the special rules that apply to vehicle donations. You can deduct contributions to a charity only if you itemize deductions on Schedule A of Form 1040. To read this Article Click here
Tips for Deducting Charitable Contributions
When preparing to file your federal tax return, don’t forget your contributions to charitable organizations. Your donations could add up to a sizeable tax deduction if you itemize on IRS Form 1040, Schedule A. To read this Article Click here
Tax Credit for Hybrid Vehicles
If you bought a hybrid vehicle in 2007, you may be entitled to a tax credit on your 2007 return. The credit is worth as much as $3,000 for the most fuel-efficient models. To read this Article Click here
Deducting Costs of Refinancing Your Home
Taxpayers who refinanced their homes may be eligible to deduct some costs associated with their loans. To read this Article Click here
Sale of Your Home
If you have a gain from the sale or exchange of your main home, you may be able to exclude all or part of the gain from your income. To read this Article Click here
Home Office Deduction
If you use a portion of your home for business purposes, you may be able to take a home office deduction whether you are self-employed or an employee. To read this Article Click here
Deduction for Educator Expenses
If you are an eligible educator, you may be able to deduct up to $250 of expenses you paid for purchases of books and classroom supplies. To read this Article Click here
Itemizers Can Deduct Certain Taxes
Did you know that you may be able to deduct certain taxes on your federal income tax return? You can take these deductions if you file Form 1040 and itemize deductions on Schedule A. Deductions decrease the amount of income subject to taxation. To read this Article Click here
How to Avoid Tax Time Problems
Are you looking for ways to avoid the last-minute rush for doing your taxes? Here are some stress-relieving ideas to help you. To read this Article Click here
Saver’s Credit for Retirement Savings Contributions
Even though you may be on vacation, the IRS is always at work thinking about taxes! August and the “Dog Days of Summer” are upon us. Taxes are probably the furthest thing from your mind. But now, months before the end of the year and the start of tax season, is a good time to takes steps to lower your tax bill for 2008. To read this Article Click here
Offset Education Costs
Education tax credits can help offset the costs of higher education for yourself or a dependent. The Hope Credit and the Lifetime Learning Credit are two education credits available which may benefit you. To read this Article Click here
New Form for Employees Misclassified as Independent Contractors
In 2007, were you an employee whose employer paid you as an independent contractor? Employees usually receive a Form W-2 while independent contractors usually receive a Form 1099-MISC. To read this Article Click here
Claiming the Child and Dependent Care Credit
If you paid someone to care for a child under age 13 or a qualifying spouse or dependent so you could work or look for work, you may be able to reduce your tax by claiming the Child and Dependent Care Credit on your federal income tax return. To read this Article Click here
Claiming the Child Tax Credit
With the Child Tax Credit, you may be able to reduce the federal income tax you owe by up to $1,000 for each qualifying child under the age of 17. To read this Article Click here
Beware of Tax Scams
Don’t fall victim to tax scams. These schemes take several shapes, ranging from promises of large tax refunds to illegal ways of “untaxing” yourself. To read this Article Click here
Don't Miss out on Your Stimulus Payment
Are you wondering what to do to ensure that you receive your economic stimulus payment which the IRS will begin to send out this May? To read this Article Click here
Are You Eligible for a Tax Credit?
Taxpayers should consider claiming tax credits for which they might be eligible when completing their federal income tax returns. A tax credit is a dollar-for-dollar reduction of taxes owed. To read this Article Click here
Volunteer Tax Return Preparation
Are you puzzled by the tax law and which credits and deductions you can take? If so, then why not look into the free, IRS-sponsored, volunteer tax return preparation services? To read this Article Click here
Free Tax Services
The IRS provides free publications, forms and other tax material and information to help taxpayers meet their tax obligations. To read this Article Click here
Free Tax Help for the Military
If you, or your spouse, are a member of the military, you may be eligible to receive free assistance with the preparation and filing of your federal tax return. The U.S. Armed Forces participate in the Volunteer Income Tax Assistance Program (VITA). To read this Article Click here
IRS Toll-Free Help
Free tax help from the IRS is just a phone call away. The IRS provides various services through its toll-free telephone numbers. Some of these services are available 24 hours a day. To read this Article Click here
Tax Rates for a Child's Investment Income
Part or all of a child's investment income may be taxed at the parent's rate rather than the child's rate. Because a parent's taxable income is usually higher than a child's income, the parent's top tax rate will often be higher as well. To read this Article Click here
Income from Foreign Sources
Many United States citizens and resident aliens receive money from foreign sources. These taxpayers must remember that they must report all such income on their tax return, unless it is exempt under federal law. To read this Article Click here
Taxes on Early Distributions from Retirement Plans
Payments that you receive from your IRA or qualified retirement plan before you reach age 59½ are normally called ‘early’ or ‘premature’ distributions. These funds are subject to an additional 10 percent tax and must be reported to the IRS. To read the Article Click here
Tax Facts About Capital Gains and Losses
Almost everything you own and use for personal purposes, pleasure or investment is a capital asset. When you sell a capital asset, the difference between the amounts you sell it for and your basis, which is usually what you paid for it, is a capital gain or a capital loss. While you must report all capital gains, you may deduct only capital losses on investment property, not personal property. To read this Article Click here
Gambling Income and Losses
Gambling winnings are fully taxable and must be reported on your tax return. Gambling income includes, but is not limited to, winnings from lotteries, raffles, horse and dog races and casinos, as well as the fair market value of prizes such as cars, houses, trips or other noncash prizes. To read this Article Click here
Tips are Subject to Taxes
Do you work at a hair salon, barber shop, casino, golf course, hotel or restaurant or drive a taxicab? The tip income you receive as an employee from those and other services is taxable income. To read this Article Click here
Paying or Receiving Alimony?
If you were recently divorced and are paying or receiving alimony under a divorce decree or agreement, you need to consider the tax implication for your 2007 federal income tax return. To read this Article Click here
Are Your Social Security Benefits Taxable?
How much, if any, of your social security benefits are taxable depends on your total income and marital status. Generally, if social security benefits were your only income, your benefits are not taxable. To read this Article Click here
What Income is Taxable? Nontaxable?
Generally, most income you receive is taxable. But there are some situations when certain types of income are partially taxed or not taxed at all. To read this Article Click here
Direct Deposit and Split Refund
Taxpayers have choices and flexibility for the direct deposit of 2007 federal income tax refunds. To read this Article Click here
Can You Use Schedule C-EZ?
Want to save time and trouble when filing taxes for your small business? You may be eligible to use the abbreviated Schedule C-EZ instead of the longer Schedule C when reporting business income and expenses on your 2007 Form 1040 federal income tax return. To read this Article Click here
Changes to Tax Laws in 2007
Taxpayers should be aware of important changes to the tax law before they complete their 2007 federal income tax forms. Here are some changes that may affect your return. To read this Article Click here
Guidelines for Roth IRA Contributions
Although Roth IRAs are popular retirement arrangements, some taxpayers may be confused about whether they can contribute to a Roth IRA. To read this Article Click here
Missing a Form 1099?
If you receive certain types of income, you may get a Form 1099 for use with your federal tax return. Form 1099 is an information return provided by the payer of the income. The payer should send or provide your Form 1099-series information returns by January 31, 2007. To read this Article Click here
Missing Your Form W-2?
Did you get your W-2? These documents are essential to filling out most individual tax returns. You should receive a Form W-2, Wage and Tax Statement, from each of your employers each year. Employers have until January 31, 2008 to provide or send you a 2007 W-2 earnings statement either electronically or in paper form. To read this Article Click here
Use EFTPS to Pay Your Taxes Electronically
If you are going to owe taxes when you file your federal tax return, consider paying through the Electronic Federal Tax Payment System (EFTPS). To read this Article Click here
The EITC is for people who work, but have lower incomes. If you qualify, it could be worth up to $4,700 this year. So you could pay less federal tax or even get a refund. That’s money you can use to make a difference in your life. To read this Article Click here
Check Out Free File
If you have access to a computer and the Internet you may be eligible to prepare and file your 2007 federal tax return electronically—for free. Free File is an easy way to file your taxes and get your refund in half the time. To read this Article Click here
Receive Your Refund Faster with Direct Deposit
Want your refund faster? Have it deposited directly into your bank account. More taxpayers are choosing direct deposit as the way to receive their federal tax refunds. More than 61 million people had their tax refunds deposited directly into their bank accounts in 2007. It’s a secure and convenient way to get your money in your pocket faster. To read this Article Click here
e-file - A Smart Way to do Your Taxes
Every year, more taxpayers discover the benefits of filing their tax return electronically. Whether you use a professional tax preparer authorized by the IRS or do it yourself from a home computer, there are many reasons to consider e-filing your tax return this year. To read this Article Click here
What to do if You Haven't Filed Your 2006 Return
The failure to file a federal tax return can be costly — whether you end up owing more or missing out on a refund. There are several reasons taxpayers don’t file their taxes. Perhaps you didn’t know you were required to file. Maybe, you just kept putting it off and simply forgot. Whatever the reason, it’s best to file your return as soon as possible. To read this Article Click here
Tips for Recently Married or Divorced Taxpayers
Newlyweds and the recently divorced should ensure the name on their tax return matches the name registered with the Social Security Administration (SSA). A mismatch could unexpectedly delay a tax refund. To read this Article Click here
Moving Soon? Let the IRS Know
If you changed your home or business address, notify the IRS to ensure that you receive any refunds or correspondence. To read this Article Click here
Gift Taxes
If you gave any one person gifts in 2007 that are valued at more than $12,000, you must report the total gifts to the Internal Revenue Service and may have to pay tax on the gifts. The person who receives your gift does not have to report the gift to the IRS or pay gift or income tax on its value. To read this Article Click here
Quick and Easy Access to IRS Forms and Publications
The Internal Revenue Service has many forms and free publications on a wide variety of topics to help you understand and meet tax filing requirements. To read this Article Click here
How to Get a Copy of Your Tax Return Information
There are two easy and convenient options for obtaining copies of your federal tax return information — tax return transcripts and tax account transcripts — by phone or by mail. To read this Article Click here
Tax Information Available in Spanish - Información Tributaria en Español
If you need federal tax information, the IRS provides free Spanish language products and services. Pages on the Internal Revenue Service’s Web site, pre-recorded tax topics, refund information, tax publications and toll-free telephone assistance are all available in the Spanish language. To read this Article Click here
IRS Publication 17 — Now Easier to Navigate Online
Are you facing a lot of different tax questions this year? IRS experts have pulled together an overview of common tax issues in one convenient place — Publication 17, Your Federal Income Tax. This updated publication, available on the IRS Web site, IRS.gov, contains a vast array of helpful information for individual taxpayers. To read this Article Click here
IRS Has Free Publications on Every Topic You Need
The IRS has free publications to answer just about any tax question you have. Publications on a variety of tax-related topics are available by phone or the Internet at IRS.gov. To read this Article Click here
1040 Central — One Click Away
Don’t wait in line, go on-line. The IRS Web site is a great resource for answers to tax questions that arise during the filing season. Access 1040 Central at IRS.gov under the “Individuals” tab and discover user-friendly tools that will make completing your 2007 tax return quick and easy. To read this Article Click here
Keeping Good Records
You can avoid headaches at tax time by keeping track of your receipts and other records throughout the year. Good recordkeeping will help you remember the various transactions you made during the year, which in turn may make filing your return a less taxing experience. To read this Article Click here
Advice for Choosing a Tax Return Preparer
Taxpayers who pay someone to do their taxes should choose a preparer wisely. If you choose to use a paid tax preparer, it is important that you find a qualified tax professional. To read this Article Click here
Should You Itemize?
Whether to itemize deductions on your tax return depends on how much you spent on certain expenses last year. Money paid for medical care, mortgage interest, taxes, charitable contributions, casualty losses and miscellaneous deductions can reduce your taxes. To read this Article Click here
Choose the Simplest Federal Tax Form for Your Needs
The three forms used for filing individual federal income tax returns are Form 1040EZ, Form 1040A and Form 1040. If you are filing a federal income tax return on paper, use the simplest form you can. Using the simplest allowable form will reduce the chance of an error that may cost you money or delay the processing of your return. To read this Article Click here
Will the AMT Delay Your Refund?
This year, some early filers may have to wait a few extra weeks for their refunds. The delay is due to the Alternative Minimum Tax (AMT) legislation enacted in December. To read this Article Click here
Choose Your Correct Filing Status
Your federal tax filing status is based on your marital and family situation. It is an important factor in determining whether you must file a return, your standard deduction and your correct amount of tax. To read this Article Click here
Should You File a Tax Return?
You must file a tax return if your income is above a certain level. The amount varies depending on filing status, age and the type of income you receive. To read this Article Click here
Seven Ways to Get a Jump Start on Your Taxes
Earlier is better when it comes to working on your taxes. Taxpayers are encouraged to get a head start on tax preparation, especially since early filers avoid the last minute rush and get their refunds sooner. To read this Article Click here
